Financial news

The share of assets of the financial system in Bulgaria decreased to 133.8 percent of the gross domestic product (GDP) at the end of June 2015, according to Investor.bg calculations based on data from the part concerning the structure and interconnectedness of the financial system in the quarterly edition of the Bulgarian National Bank (BNB) 'Banks in Bulgaria’. Outstripping growth rate of GDP compared with that of financial assets as a whole, and the decline in bank assets during the period, are among the reasons for the decrease in the ratio of 136.05 percent in late March 2015. In the second quarter the assets of the financial system are less by BGN 1.94 billion, or 1.69 percent, to BGN 112.7 billion. At the end of the first quarter they amounted to BGN 114.6 billion. BNB does predict GDP of BGN 84.235 billion this year.

Bulgaria reported negative monthly consumer price inflation of -0.1% for November. The inflation rate for the first 11 months of 2015 was negative at -0.4%. Annual inflation (November 2015 vs November 2014) was also negative, measuring minus 0.4%. The harmonized monthly consumer price inflation for November was negative at -0.3%. The annual inflation (November 2015 compared to November 2014) measured by the Harmonized Consumer Price Index was also negative, -0.9%. The annual average inflation, measured by the Harmonized Index of Consumer Prices (HICP) in the last 12 months (December 2014 - November 2015) compared to the previous 12 months (December 2013 - November 2014) was negative, measurng minus 1.2%. The HICP is the comparable measure of inflation across EU member states.

Companies

Shell Bulgaria gave up seven stations in favor of one of the main companies of Grisha Ganchev - Litex Commerce. The Dutch chain believes that these sites are not profitable. They will not be used by the acquiring company as well. In such transactions, the parties are obliged to notify the Commission for Protection of Competition (CPC) if the combined turnover of the merging parties exceeded BGN 25 million in the previous financial year. In early November, the CPC received a request to answer whether a concentration would take place, or will adversely affect competition. On 9 December the Commission made public its decision: the transaction will not affect effective competition on the market and can be carried out. Actually, these are sites that Shell derived from Litex Commerce back in 1998. In that time Litex owned the largest private chain of petrol stations in Bulgaria.

Pharmaceutical company Roche expects a positive performance in Bulgaria next year when it plans to launch new drugs that will tap into unmet demand for medical treatment, the general manager of Roche Bulgaria said. “This, of course, will depend to a high degree on the cost containment measures, imposed by the health authorities in the country,” Metodija Cadikovski said. In 2015, Roche expects to reach mid-single-digit growth in sales in terms of value in Bulgaria, excluding the pay-back effect from Ordinance 10 of the country’s health ministry which sets the terms and conditions for the payment for drugs and medical products. Roche has a 7.9% share on the segment for prescription drugs in Bulgaria, the official said, citing figures from consultancy firm IMS Health. The overall drug market in Bulgaria is expected to grow by around 7% in 2015, Cadikovski said.

Commission for Protection of Competition allowed founders of Vinprom Peshtera to acquire Sofia-based hotel Hilton. That will happen after the controlled by them Galaxy investment Group buys owner of the hotel Rasaso Anshtalt, Liechtenstein. Two years ago the five-star hotel was acquired by Spas Rusev. Since last year the hotel has been property of the registered in Liechtenstein Rasaso via the Bulgarian company. The deal coincides with the acquisition by Rusev of a significantly larger asset - BTC. The price of the hotel was not reported by the buyer. It is only known that the new buyer will finance the purchase with bank loans. The change is not surprising, since even under the previous purchase of Hilton Rusev used funding from the company of Shterev and Petrov.

US-based money transfer company Western Union  is launching new transactional websites in Bulgaria, Croatia, Romania and Slovenia. With these new introductions, Western Union now has online transactional services in 33 countries, enabling consumers to send money to more than 200 countries and territories, it said in a statement. Consumers across these countries can now send fast, convenient and reliable Western Union money transfer transactions by visiting the website or the country’s agent locations. As of September 30, 2015, the Western Union, Vigo and Orlandi Valuta branded services were offered through a combined network of over 500,000 agent locations in 200 countries and territories and over 100,000 ATMs and kiosks. In 2014, Western Union completed 255 million consumer-to-consumer transactions worldwide, moving USD 85 billion of principal between consumers, and 484 million business payments.

IndustryMatchMaking 2016 - IMM2016, Business and technology matching event

Europe

The European Union revived Turkey's membership bid and opened accession talks with Serbia, showing how a migration crisis and Russia's presence in the Balkans has prompted the EU to rethink plans to stop expanding. More than a year after EU chief executive Jean-Claude Juncker said Brussels needed a pause in its policy of admitting new members, events have driven officials to revive membership talks to seek influence and stability abroad. While neither Turkey nor Serbia are likely to join the world's largest trading bloc in the near future, the EU hopes that formal negotiations on different areas of its "chapters" or rules, will help tackle multiple crises on its borders. "The refugee crisis and terrorism shows us that we are on the same continent, we are facing the same challenges and the more we develop common policies, the better off we will be," EU foreign policy chief Federica Mogherini said.

America

Newell Rubbermaid Inc, the maker of Sharpie markers and Parker pens, agreed to buy diversified consumer products company Jarden Corp for $13.22 billion, adding brands such as Sunbeam kitchen appliances and Coleman outdoor gear. Jarden shareholders will receive $21 in cash and 0.862 Newell shares for each share held, the companies said on Monday. This implies an offer of $60 per share, a 14 percent premium to Jarden's closing price on Friday. Jarden's shares rose nearly 5 percent to $55.25 in premarket trading on Monday, while Newell's shares fell 2.3 percent to $44.23. The deal also gives Newell ownership of brands such as Yankee Candle, as well as yearbooks and class rings maker Jostens Inc, which Jarden bought for $1.5 billion in October. Jarden founder Martin Franklin has built the company through acquisitions, making it one of the largest diversified consumer products makers in the United States, selling everything from firewood to condoms. Newell Rubbermaid said it expects the deal to expand its presence in food and beverage, baby products and kitchen appliances among key retailers and geographies.

Asia

China will post record capital outflows in 2015 of more than $500 billion, according to a report by the Institute of International Finance (IIF). The IIF, an authoritative tracker of emerging market capital flows, said the world's second largest economy is likely to see $150 billion in capital outflow in the fourth quarter of the year, following the third quarter's record $225 billion. The estimate is based on trade data, Chinese banks' transactions on the behalf of clients, and changes in central bank reserves, the IIF said in the report. "The latest high-frequency indicators show that Chinese exports continued to decline for a fifth consecutive month in November, with the trade surplus narrowing to $54 billion from $62 billion in October," the report said. Forex reserves had fallen around $87 billion to $3.44 trillion during the month to the lowest since February 2013. The yuan has been weakening against the dollar in recent months, mainly pressured by jitters about slowing growth in China and an expected interest rate rise in the United States.

Thracian Tomb of Mezek

The village of Mezek is situated in the Rhodopi mountain, some 10 km away from the town of Svilengrad. According to specialists, the monumental tomb discovered here in 1931, was the biggest beehive tomb in ancient Thrace, obviously made for one of the local rulers. It is covered with a massive 15-m-high mound. It is built of metal blocks, connected with iron clamps. A 20-m long corridor leads to the tomb, which consists of two rectangular and one round camera. Various golden, bronze, glass and ceramic objects have been found inside the tomb. One of the most interesting findings is a bronze statue of a wild boar in real size, dated back to the second half of IV century BC. The Tomb of Mezec is of great historical value and attracts the interest of many scientists and archeologists.

On that day:  Kadin Bridge